Service Inflation Climbing, Core CPI Slipping — What’s Really Going On?

Latest inflation numbers just dropped. Here’s the weird part: service prices are shooting up, but Core CPI is actually dipping. Let’s break it down 👇

📈 Why Are Services Getting So Expensive?

Service inflation covers stuff like:

Housing and rent

Healthcare

Insurance

Transport

Hotels, restaurants, you name it

Here’s the catch—services need people. When companies pay higher wages, those costs show up in your bills. Add strong demand and not enough workers, and prices really start climbing.

📉 So Why Is Core CPI Dropping?

Core CPI leaves out food and energy (the wild cards). When it falls, it usually means:

Goods aren’t getting pricier

Supply chains are running smoother

People aren’t buying as many big-ticket items

In short, overall price pressure is cooling off a bit.

⚖️ What Does This Mean for the Economy?

1. Central banks stay on edge. As long as services stay pricey, don’t expect rate cuts anytime soon.

2. Markets get jumpy. Mixed signals like this make investors nervous.

3. Consumers feel the squeeze. Especially if you’re renting, visiting the doctor, or paying insurance. Those bills aren’t letting up.

🏦 What About Policy?

If service inflation sticks around, the Fed and others might keep interest rates high—even if goods inflation chills out. Rate cuts? Not so fast.

🔎 The Big Takeaway

Goods inflation? Cooling.

Service inflation? Still hot.

Core CPI? Slipping.

Policy? Depends on what the data says next.

#CPIWatch #Write2Earn @EthiocoinGiram1

Bottom line: inflation isn’t just one story. For investors and traders, it’s a reminder—don’t sleep on the details. Different parts of the economy move at different speeds.